Five international banks – HSBC, ANZ, Standard Chartered, Citibank and Singapore’s DBS – according to the FT, are believed to be jockeying for position to get a slice of the action at either Sacom Bank or Asia Commercial Bank, Vietnam’s biggest private banks.
Currently the Vietnam finance industry is extremely restricted to direct foreign involvement, with foreign banks limited to just two branches which mainly serve multinational customers. As a result, those who want to gain from the local market’s considerable potential are left with the only option of investing in domestic institutions.
Under current law, no foreign company can own more than 10% of a Vietnamese business, with total outside investment limited to just 30%, meaning that no overseas company can have a controlling share.
Sacom has total assets of about $660 million and recorded $9.6 million in profits last year. While ACB has $860 million in total assets, and profits were $12 million last year, according to figures supplied to the FT.
Sources close to the matter said that both Sacom Bank and Asia Commercial Bank are currently in negotiation with multiple suitors.
